[SMM Daily Coke & Coal Brief Comment] 20250516

[SMM Daily Commentary on Coking Coal]

Coking Coal Market:

In Linfen, the quoted price for low-sulphur coking coal is 1,250 yuan/mt. In Tangshan, the quoted price for low-sulphur coking coal is 1,330 yuan/mt.

Coal mine production is normal, but influenced by wait-and-see sentiment, downstream buyers maintain just-in-time procurement. The market is cautious about purchases, leading to a decrease in transaction orders at coal mines. The rate of unsold bids in online auctions remains high, and there is still downside room for coking coal prices in the short term.

Coke Market:

The nationwide average price for first-grade metallurgical coke (dry quenching) is 1,625 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke (dry quenching) is 1,485 yuan/mt. The nationwide average price for first-grade metallurgical coke (wet quenching) is 1,290 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke (wet quenching) is 1,200 yuan/mt.

In terms of supply, the first round of coke price reductions has been implemented, but most coking enterprises are still operating at the break-even point. Production remains stable, and coking enterprises are actively shipping products, with no inventory pressure on coke. In terms of demand, the peak demand season for steel is gradually fading, with pig iron production at steel mills peaking and then pulling back. Steel mills are cautious about purchases, and currently, most steel mills have relatively high coke inventory levels, maintaining purchasing as needed. In summary, the supply and demand structure for coke is trending towards looseness. After the first round of price reductions, the coke market may continue to be in the doldrums in the short term. [SMM Steel]